Haventree Bank launches online bank, targets Canadian fintechs

Haventree Bank, a Toronto-based alternative mortgage lender, is moving beyond B-lending. On Tuesday it launched a direct-to-consumer online banking app, putting itself in more direct competition with Canadian fintechs like EQ Bank and Wealthsimple.

The bank, which holds a Schedule I license, is starting with a hybrid chequing-and-savings account. No monthly fees, no minimum balance. It supports joint accounts, Interac e-transfer, bill payments, and direct deposit. GICs, which Haventree already offered through brokers, will now be available directly to customers.

CEO Fern Glowinsky said the bank wants to meet clients where they are on their financial journey. She also stressed that Haventree is not trying to be everything. “That’s not our mission,” she said in an interview Monday.

Haventree originally operated as Equity Financial Trust before rebranding in 2018 after obtaining its Schedule I license. The bank’s core business has been B-lending – making mortgages to borrowers who don’t qualify for prime loans from Canada’s Big Six banks. Those customers may have lower credit scores, complex income histories, or be self-employed without T-4 slips. Glowinsky said many are not underbanked; they simply use Haventree as a secondary lender.

Demand for alternative lenders has been rising in Canada as home affordability drops and lending rules tighten, BNN Bloomberg has reported. Self-employed workers and entrepreneurs often struggle to get loans from traditional banks that require T-4 income verification. Haventree’s new deposit product lets it serve those same customers with everyday banking, not just mortgages.

The move puts Haventree in a crowded field. EQ Bank and Wealthsimple already offer no-fee accounts with competitive rates. Glowinsky argued that Haventree can stand out with good rates and a focused product set. She also noted that more Canadians are spreading money across multiple institutions, partly because CDIC deposit insurance caps at $100,000 CAD per individual per institution.

For now, Haventree is not trying to match the full product suite of a Big Six bank. It is betting that a narrow, well-executed digital offering will attract customers who already use alternative lenders for mortgages. The question is whether that niche is big enough to support another player.